Creating Value through IT-Enabled Resource Efficient Production

Abstract

The efficient use of resources in production has been a crucial strategy for achieving performance in manufacturing firms for decades. Information technology has become an important enabler in manufacturing firms, having the potential to transform the industry into a more resource efficient one with sustainable behaviour. However, its influence on resource efficient production remains unexplored. By drawing on the resource-based view and the dynamic capability theory, we develop a research model and propose that IT alignment is the primary source of resource efficient production, which leads to superior performance outcomes. Moreover, we argue that IT alignment mediates the relationship between IT integration and resource efficiency. An empirical study across executives in manufacturing firms (n = 242) was conducted to empirically validate the research model. Our findings provide evidence for the important role of IT capabilities for resource efficient production and advance our understanding of creating IT value in manufacturing contexts.